Before determining the validity of the exemption clause, the first issue to be raised is when the contract was formed between Frank and Packer Line. A contract is an agreement entered into by two or more parties, keeping within the terms of the contractual agreement. For the contract to be enforceable, there must have an offer made, which indicates willingness by the offeror to be…….(cite a case that illustrate this), an unqualified acceptance (citation), ……..In Baltic Shipping Co V Dillon, Dillon had made an offer by booking a cruise through Jayes Travel Service, where the offer was formalised by the payment of the deposit and when Jayes Travel Service issued the ‘statement of account’. Reasonable time was open for acceptance by CTC Cruises on behalf of Baltic Shipping Co. Acceptance was completed when Dillon had paid the balance payment and the tickets were issued. The similarity between Baltic Shipping Co V Dillon and Frank’s case was that it involves the payment and issuing of ticket. By basing on the facts of Dillon’s case, the contract between the two parties was formed when the balance payment was paid by Frank’s receptionist in exchange for the ticket issued by Packer Line. Validity of Exemption Clause
The next issue is whether the exemption clause is valid.
Exemption clauses seek to limit one’s liability under the contract by clearly mentioning that they will not be responsible for certain liabilities. The clause could be valid as long as it is properly included in the contract. When Frank’s receptionist paid the payment in exchange for the ticket, the envelope containing the ticket was written “PLEASE READ CONDITIONS OF THE ENCLOSED CONTRACT”. The ticket itself contained the exemption clause. It could be said that the exemption clause could have been valid as notice of the clause was given at the time of the contract. However, the issue here is whether reasonable steps had been taken to draw to the attention of Frank of the existence of the exemption clause. Reasonable Steps
The Essay on Binding Arbitration Clauses Contracts Contract Employment
First off, I do not think that binding arbitration clauses should ever restrict the arbitration to only one group of people (ex. Home builders association). If there ever is a situation in which a binding arbitration clause is acceptable, there should at least be a choice of who the arbitration is and the choices should be neutral parties (ex. In the BP credit card bill stuffer, it gave the option ...
In Causer V Browne, Causer damages the clothes which Browne sent for dry cleaning. When Browne sued, Causer relied on the exemption clause on the receipt. The receipt was issued when Browne made the payment. Causer lost his case as the judge held that it was not obvious that the receipt had terms of contract on them. It must show that reasonable steps are brought to the attention of the other party. When the receipt was issued, Causer should have mention to Browne regarding the exemption clause on the receipt. Back to the scenario, Frank is not present when the acceptance is completed. The travel agent did not take reasonable steps to inform Frank of the exemption clause, and Frank did not read the ticket or open the envelope until he boarded the cruise. The exclusion clause should be deemed invalid. Since the exemption clause is not valid, Frank’s claim for injury is not limited to $500. Now the question is whether Frank could seek to claim other damages other than the injury suffered due to the termination of the contract.
Restitution of the ticket price
It is a question of whether Frank could claim back the money paid for the ticket. In Baltic Shipping Company V Dillon, it was held that there was no total failure of consideration as Dillon; the plaintiff in the case, had enjoyed eight out of the fourteen day cruise until the ship sank. Therefore, Dillon was only entitled to the restitution of the purchase price corresponding to the period of the trip she had missed. Back to the scenario, however, does not provide enough information regarding the duration of the cruise and the time the storm grounded the ship. Therefore, the refund of the ticket price should be possible, but the amount will be dependent on the period of the cruise when the storm grounded the ship. Damage for Disappointment
The Essay on Anne Frank 2
Anne Frank was born on June 12, 1929. She was the second daughter of Otto and Edith Frank. Both of Annes parents were from respected German-Jewish families. Anne and her older sister Margot were raised in Germany in an atmosphere of tolerance. The Franks had friends of many faiths and nationalities. Otto Frank served honorably as an officer in the German army during World War I. However, the ...
Next, the issue is whether Frank could seek to claim damages for disappointment. In order for damages to be recoverable, losses must be reasonably contemplated as a result of the breach. In the case of Falco V James McEwan & Co Pty Ltd, damages for disappointment was not awarded for the failure on the defendant part to carry out its contractual obligations to supply and install an oil heater in the plaintiff house. The damage is considered to be too remote. However, if the objective of the contract is to provide entertainment and enjoyment, then damages can be awarded for the disappointment, distress, upset and frustration caused by the breach.
But it is also mentioned that under the common law, damages could not be awarded for distress or disappointment arising from a breach of contract unless it arises from a breach of an express or implied term where enjoyment, pleasure and personal protection were promised. It is an express term that the cruise will take Frank to his destination, which is Sydney. It is also an implied term, which goes without saying, that the cruise will be an enjoyable experience. Obviously, Packer line had breached those terms. It is obvious that Frank will be disappointed by failing to reach his destination and also the loss of enjoyment caused by the incompletion of the cruise. Therefore, Frank can lodge a claim for damages for disappointment against Packer Line. Conclusion
Frank not only could claim damages for his injury in excess of $500 due to the invalidity of the exemption clause, but also seek to claim for restitution of the fare price and damages for disappointment.
